Professional Tax Registration & Compliance Filing
Are you a self employed professional? Or you have employed people? Get Professional Tax Certificate with TAXAJ
It usually takes 3 to 5 working days.
- Issue of Enrolment/ Registration Certificate
- Documented Follow-up
- Business hours - CA support
- Does not include PT payment
- Every self employed professional
- Any entity employing one or more employees
- Purchase of Plan
- Upload documents on vault
- Filing of enrolment/registration application
- Receipt of enrolment certificate
Name, Contact Number and Email Id of Stakeholder.
Self Attested PAN, Aadhar & Passport size photo of Stakeholder.
Specimen Signatures of Stakeholder.
Latest Electricity Bill/Landline Bill of Registered Office.
NOC from owner of registered office. (If Owned)
Rent Agreement from Landlord. (If Rented/Leased)
PAN, TAN, COI of the Business Entity
Cancelled Cheque in business name
Which states fall under Professional Tax?
Professional Tax Applicable in States
Professional Tax Not Applicable in States
What is Professional Tax and who Levies it?
What is Professional Tax and who Levies it?
The nomenclature ‘Professional tax’ could be one of those terms which do not completely convey the real meaning of the term. Unlike the name suggests, it is just not the tax levied only on professionals. It is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.
As per Article 246 of the Constitution of India, only Parliament has the exclusive power to make laws with respect to the Union List which includes taxes on income. The state has the power to make laws only with respect to the Concurrent and State list.
However, professional tax though is a kind of tax on income levied by State Government (not all states in the country chose to levy professional tax). The State Government is also empowered to make laws with respect to professional tax though being a tax on income under Article 276 of the Constitution of India which deals with tax on professions, trades, callings and employment.
It may be noted that professional tax is a deductible amount for the purpose of Income-tax Act, 1961 and can be deducted from taxable income.
Dual Registration and Separate Registration for Each State
An employer/professional must have dual registration. The two registrations required are:
A) Professional Tax Registration Certificate to pay tax on trade or profession
B) Professional Tax Enrollment Certificate to deduct such tax from the salaries, trade, etc.
For offices with multi-state presence, since the tax regimes vary in each state, a separate registration is required for each such office established under different State Legislations. Moreover, Registration Certificate has to be obtained by an employer within 30 days of the appointment of staff.
Deposit of Tax
| Employer has employed | Make payment within |
|---|---|
| More than 20 Employees | 15 days from end of the month |
| 20 employees or less | 15th of next month from the end of each quarter |
Penalties for Non-Compliance:
While each state has the ability to fix penalty based on its own tax laws, the regime is generally centered around the following penalties:
| Delay in | Non-Compliance | Penalty levied by most states |
|---|---|---|
| Registration | Non-registration when the employer was liable to be registered | Rs 5/Day |
| Payment | Non-payment of tax or payment after the due date. | 10% of the Amount of Tax |
| Filing of Return | Non-filing of Tax Returns or delay in filing | Rs 1000/ return delayed by 1 month Rs 2000/return for a further delay. |
Professional Tax Rate for Different States
Professional Tax Rate for Different States
Professional Tax or Profession Tax is levied by the State Government on the income of the assessee. Under Article 276 of the Indian Constitution, the state governments are empowered to decide the rate for the professional tax in the state. The maximum amount that can be charged under this tax regime is Rs. 2500. In a few states, this tax is even levied on the basis of source of income.
Professional Tax Rates in Andhra Pradesh
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 15,000 | Nil |
| Rs. 15,001 - Rs. 20,000/- | Rs 150 |
| Rs. 20, 001 or above | Rs 200 |
Professional Tax Rates in Assam
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs.10,000/- | Nil |
| Rs. 10,001 to Rs. 15,000 | Rs 175 |
| Rs. 15,001 to Rs. 24,999/- | Rs 180 |
| Rs. 25,000 or above | Rs. 208 |
Professional Tax Rates in Bihar
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 25,000/- | Nil |
| Rs. 25,001 - Rs. 41,666 | Rs. 83.33 |
| Rs. 41,667 - Rs. 83,333/- | Rs. 166.67 |
| Rs. 83,333 - or above | Rs. 208.33 |
Professional Tax Rates in Goa
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 15,000/- | Nil |
| Rs. 15,001 - Rs.25,000/- | Rs. 150 |
| Rs. 25,001 or above | Rs. 200 |
Professional Tax Rates in Gujarat
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 5,999/- | Nil |
| Rs. 6,000 - Rs. 8,999 | Rs. 80 |
| Rs. 9,000 - Rs. 11,999/- | Rs. 150 |
| Rs.12,000 or above | Rs. 200 |
Professional Tax Rates in Jharkhand
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 25,000/- | Nil |
| Rs. 25,001 - Rs. 41,666/- | Rs. 100 |
| Rs. 41,667 - Rs. 66,666/- | Rs. 150 |
| Rs. 66,667 - Rs. 83,333/- | Rs. 200 |
| Rs. 83,334 - or above | Rs. 208 (for first 11 months and Rs. 212 in last month) |
Professional Tax Rates in Karnataka
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 15,000/- | Nil |
| Rs. 15,001 or above | Rs. 200 |
Professional Tax Rates in Kerala
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 1,999 | Nil |
| From Rs. 2,000 – Rs. 2,999 | Rs. 20 |
| From Rs. 3,000 – Rs. 4,999 | Rs. 30 |
| From Rs. 5,000 – Rs. 7,499 | Rs. 50 |
| From Rs. 7,500 – Rs. 9,999 | Rs. 75 |
| From Rs. 10,000 – Rs. 12,499 | Rs. 100 |
| From Rs. 12,500 – Rs. 16,666 | Rs. 125 |
| From Rs. 16,667 – Rs. 20,833 | Rs. 166 |
| Rs. 20,834 or above | Rs. 208 |
Professional Tax Rates in Madhya Pradesh
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 18,750/- | Nil |
| Rs. 18,751 - Rs. 25,000/- | Rs. 125 |
| Rs. 25,001 - Rs. 33,333/- | Rs. 167 |
| Rs. 33,334/- or above | 208 (11 months) & 212 (12th month) |
Professional Tax Rates in Maharashtra
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| For Men | Nil up to Rs. 7,500 |
| From Rs. 7,500 – Rs. 10,000 | Rs 175 |
| For Women | Nil up to Rs. 10,000 |
| For all Above Rs. 10,000 | Rs. 200 and Rs. 300 for the month of February |
Professional Tax Rates in Manipur
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 4,250/- | Nil |
| From Rs. 4,251 – Rs. 6,250/- | Rs. 100 |
| From Rs. 6,251 - Rs. 8,333/- | Rs. 167 |
| From Rs. 8,334 - Rs. 10,416/- | Rs. 200 |
| From Rs. 10,417 or above | Rs. 208 & Rs. 212 |
Professional Tax Rates in Meghalaya
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 4,166/- | Nil |
| From Rs. 4,167 - Rs. 6,250/- | Rs. 16.50 |
| From Rs. 6,251 - Rs. 8,333/- | Rs. 25 |
| From Rs. 8,334 - Rs. 12,500/- | Rs. 41.50 |
| From Rs. 12,501 - Rs. 16,666/- | Rs. 62.50 |
| From Rs. 16,667 - Rs. 20,833/- | Rs. 83.33 |
| From Rs. 20,834 - Rs. 25,000/- | Rs. 104.16 |
| From Rs. 25,001 - Rs. 29,166/- | Rs. 125 |
| From Rs. 29,167 - Rs. 33,333/- | Rs. 150 |
| From Rs. 33,334 - Rs. 37,500 | Rs. 175 |
| From Rs. 37,501 - Rs. 41,666 | Rs. 200 |
| Above Rs. 41,667/- | Rs. 208 |
Professional Tax Rates in Nagaland
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 4,000/- | Nil |
| From Rs. 4,001 - Rs. 5,000/- | Rs. 35 |
| From Rs. 5,001 - Rs. 7,000/- | Rs. 75 |
| From Rs. 7,001 - Rs. 9,000/- | Rs. 110 |
| From Rs. 9,001 - Rs. 12,000/- | Rs. 180 |
| From Rs. 12,001 or above | Rs. 208 |
| From Rs. 25,001 - Rs. 29,166/- | Rs. 125 |
| From Rs. 29,167 - Rs. 33,333/- | Rs. 150 |
| From Rs. 33,334 - Rs. 37,500 | Rs. 175 |
| From Rs. 37,501 - Rs. 41,666 | Rs. 200 |
| Above Rs. 41,667/- | Rs. 208 |
Professional Tax Rates in Odisha
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 13,304/- | Nil |
| From Rs. 13,305 - Rs. 25,000/- | Rs. 125 |
| From Rs. 25,001 or above | Rs. 200 (11 months) & Rs. 300 (12th month) |
| From Rs. 15,001 – Rs. 25,000 | Rs. 130 |
| From Rs. 25,001 – Rs. 40,000 | Rs. 150 |
| Over and Above Rs. 40,000 | Rs. 200 |
Professional Tax Rates in Puducherry
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 16,666/- | Nil |
| From Rs. 16,667 - Rs. 33,333/- | Rs. 41.66 |
| From Rs. 33,334 - Rs. 50,000/- | Rs. 83.33 |
| From Rs. 50,001 - Rs. 66,666/- | Rs. 125 |
| From Rs. 66,667 - Rs. 83,333 | Rs. 166.67 |
| Rs. 83,333 and above | Rs. 208.33 |
Professional Tax Rates in Punjab
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Above Rs. 20,833/- | Rs. 200 |
Professional Tax Rates in Sikkim
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 20,000/- | Nil |
| From Rs. 20,001 - Rs. 30,000/- | Rs. 125 |
| From Rs. 30,001 - Rs. 40,000/- | Rs. 150 |
| Above Rs. 40,000 | Rs. 200 |
Professional Tax Rates in Telangana
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 15,000/- | Nil |
| From Rs. 15,001 - Rs. 20,000/- | Rs. 150 |
| From Rs. 20,001 - or above | Rs. 200 |
Professional Tax Rates in Tripura
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 7,500/- | Nil |
| From Rs. 7,501 - Rs. 15,000/- | Rs. 150 |
| Rs. 15,000 or above | Rs. 208 |
Professional Tax Rates in West Bengal
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 8,500 | Nil |
| From Rs. 8,501 – Rs. 10,000 | Rs. 90 |
| From Rs. 10,001 – Rs. 15,000 | Rs. 110 |
| From Rs. 15,001 – Rs. 25,000 | Rs. 130 |
| From Rs. 25,001 – Rs. 40,000 | Rs. 150 |
| Over and Above Rs. 40,000 | Rs. 200 |
Professional Tax Rates in Tamil Nadu
| Slab (Income Per Month) | Amount (Per Month) |
|---|---|
| Up to Rs. 21,000 | Nil |
| From Rs. 21,001 – Rs. 30,000 | Rs. 100 |
| From 30,001 – Rs. 45,000 | Rs. 235 |
| From Rs. 40,001 – Rs. 60,000 | Rs. 510 |
| From Rs. 60,001 – Rs. 75,000 | Rs. 760 |
| From Rs. 75,001 and above | Rs. 1095 |
Similarly, there are different slabs and rates for the other states as well. For the month of February, the Professional Tax is a little higher than the rest of the eleven months in the year.
Who is responsible to collect and pay professional tax?
Who is responsible to collect and pay professional tax?
Professional tax is collected by the Commercial Tax Department. The commercial tax department of the respective states collect it which ultimately reaches the fund of municipality corporation.
Persons responsible to pay professional tax- In case of employees, an employer is a person responsible to deduct and pay professional tax to the State Government subject to the monetary threshold if any provided by respective State’s legislation.
- An employer (corporates, partnership firms, sole proprietorship, etc.) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to the monetary threshold if any provided by respective State’s legislation.
- In such a case, the employer needs to register and obtain both a professional tax registration certificate to be able to pay professional tax on his trade/profession and professional tax enrolment certificate to be able to deduct the tax from his employees and pay. Further, separate registration may be required for each office depending on the respective State’s legislation.
- Persons who are carrying on freelancing business without any employees are also required to register themselves subject to the monetary threshold if any, provided by the respective State’s legislation.
However, a professional tax levy is subject to the exemption provided by the respective State to certain categories. For example, parents or guardian of any person who is suffering from mental retardation, blind persons are exempted among others from levy of Karnataka Professional tax.
What is the procedure to pay Professional Tax? Is any return to be filed?
What is the procedure to pay Professional Tax? Is any return to be filed?
This is again a State-specific query. However, in general, a professional tax may be paid either online/offline. Further, depending on the State’s requirement, professional tax returns also need to be filed at specified intervals.
Consequences of Violation of Professional Tax Regulation
Consequences of Violation of Professional Tax Regulation
While the actual amount of penalty or penal interest may depend on the respective State’s legislation, a penalty may be levied by all such states for not registering once professional tax legislation becomes applicable.
Further, there are also penalties for not making the payment within the due date and also failing to file the return within the specified due date.
For example: In the State of Maharashtra Rs 5/day is imposed as a penalty for delay in registration, Interest @ 1.25% per month of delay in payment, a penalty of 10% of the amount of tax in case of delay/non payment of professional tax, Rs 1000 – Rs 2000 penalty for delay in filing the return
